The Channel logo

News

By | Kelly Fiveash 28th November 2007 15:42

Capita ties up Prudential deal

As one door closes, another opens...

Fresh from losing a multimillion pound local council deal, IT outsourcing outfit Capita has pounced on the man from the Pru.

Prudential said today that it planned to move 3,000 of its staff over to Capita in a cost-cutting exercise that could save the life and pensions provider £60m a year.

Capita said that under the deal, which will be subject to a consultation process and is said to be worth £722m over 15 years, it will administer around seven million life and pensions policies.

If the proposals get the go ahead, around 1,750 Prudential workers in Stirling and Reading, and 1,250 employees based in Mumbai will transfer to Capita next April.

It said that a key part of the Prudential deal would be for Capita to acquire business and assets for a consideration of £25m including the firm's offshore outfit in Mumbai, PPMS.

Capita CEO Paul Pindar said: "We are committed to expansion in both the UK life and pensions market and our Indian operations to meet increasing demand.

"The operations and employees transferring to Capita under this agreement will allow us to take a significant step forward with these ambitions."

Worker's union Unite said it "cautiously" welcomed the proposed deal.

Unite deputy general secretary Graham Goddard said in a statement: "Unite will be pressing for a commitment from Capita of no compulsory redundancies.

"We would envisage that redeployment opportunities and career prospect should be brighter in Capita, which is a growing business."

Just yesterday, Capita confirmed that talks had broken down with the North East Lincolnshire Council because neither side was able to reach a satisfactory agreement on a deal said to be worth £175m. ®

alert Send corrections

Opinion

Andrew Cobley

If only lawyers could make money rather than costing money
Memristor_wafer

Chris Mellor

Execution warrant close to being signed for Fink's folly
Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Wind turbine, image via Shutterstock
Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock